Let us look at why investing in property is a good idea. There is a lot going in its favour. Let us take stability first. According to research by AMP, Australian property has increased in value at a rate comparable to that of the share market since 1926 – an average of 11.4% per annum – despite a succession of wars, disasters, recessions and crises.
To take advantage of this stability, you don’t have to study the game like in the case of the share market. Real estate investment is far easier in comparison. If you work with the right team, getting into it and achieving growth doesn’t require any expert knowledge or daily updates. Financing real estate investment is relatively easy as well. Banks and lenders like property – mortgage is one of their key products. Residential property thus scores better than any other asset class.
Last but not the least, borrowing to invest in property also means you get greater access one of the oldest and most powerful tricks in the financial book: leverage. The ability to make a down payment, leverage your capital, and thus increase your overall return on investment is incredible.
